Omaha daily bee., 1887-12-07
will amount to sIls 1000 600. Regarding

the question of what shall be done with
this surplus revenue. the secretary says
that both bond buying, except
for sinking fund purposes and
governmental expenditure in ex-
cess of the needs OF the
government, should be rejected, and
urges that reduction OF the revenue
from taxation is the only fit remedy for
the evils which threaten the country.
In considering the methods OF reduction
proposed he takes positive ground
against either abolishing or reducing in
ternal revenue taxation, holding that
the articles upon which excise taxes are
ollected-whisky, beer and tobacco
'are in very small measure necessary to
the health or happiness of mankind"
In an equally positive way the secretary
asserts that reduction of revenue should
be made from customs taxation alone.
He says: add to the free list as many
articles as possible. Reduce duties upon
every dutiable article to the lowest
point possible; but in ascertain
ing these possibilities the pres
ent situation of labor and business must
always be kept in mind.' The secre
tary offers only brief argument in sup
port Of his position, it evidently being
understood that the elaborate discussion
of the subject was to be left to the pres
ident, whose message covers the ground
very thoroughly. Regarding the sur
plus, the secretary advises that por
tion of it be allowed to lie in banks,
''where it would be available for the
business of the country, and, as upon
withdrawal from them it would be at
once returned to the channels of bust
ness through government payments, no
shocks would be caused by such with
drawal."
An interesting part of the re-
port is devoted to customs ad-
ministration, of which the sec
retary says the difficulties in the COL
lection Of duties pointed out by his pre-
decessor still exist. He states that the
number of customs suits resulting from
the defects of the system has grown so
large that there is no reasonable pros
pect of disposing of them in this gem
GRAFTON. The laws enacted ostenslbly to
prevent fraud by undervaluation pro-
mote rather than suppress that evil.
Numerous remedies for the difficulties
are suggested, perhaps the most impor-
tant of which is a change from ad val
orem to specific duties. The secretary
says that Theoretically considered, ad
valorem are preferable to specific duties;
but in practice, under such rates as we
have had and must continue to have for
years to come, the former are the too
easy source of deception and inequality
at the custom house."
Regarding the foreign commerce of
the country the report directs attention.
to the disagreeable fact that this COM
merce carried in the vessels Of the
United States, measured by its value,
| has steadily declined from IS per cent
| in 1856 to less than IA per cent in 1887 and
even of this small per centage less than
One-half was carried in steam vessels
| bearing our flag. The secretary s.dis-
misses this rather important subject
with little more than the very instruc-
tive figures, but with this observation:
|
would not be we'll to so change our nav
igation laws as to allow foreign built
ships owned by our citizens to come and
go between this and other countries
while bearing the flag of the country of
| their owners"
On the subject of the currency the re-
| port states that the circulation of coin
| nn1 inrrnucnl from T,,1x 1SSR
| to November l, 1887, to the amount OF
$l09, 900. The secretary thinks it is
waste to coin and store any more silver
dollars at present, as there is no func-
tion which those that are coined after
this time will probably ever perform
except to lie in government vaults and
be a basis upon which silver certificates
can be issued. He recommends that the
law be amended so as to authorize the
secretary of the treasury to issue certiti-
Gates against the coming value of the
bullion bought and to coin only
such number of dollars as he might
deem expedient hereafter. Suggestion:
OF safeguards against the depreciation
of the silver dollar merit the careful at
tention of congress.
The report of Secretary Fairchild is q
practical, business-like presentation OF
the numerous affairs administered
through the treasury department, and
is valua BILE rather as compilation O.
facts with only necessary explanatory
comment than as a treatise on financial
and economic questions.
a "COlOny" Fraud.
The BEE receives from Portland